GEICO Escapes Collective Action Over OT Pay

By Kurt Orzeck

Law360, Los Angeles (November 04, 2013, 10:15 PM ET) -- Government Employees Insurance Co. on Monday escaped a collective action accusing it of cheating telephone claims representatives out of pay when a New York federal judge deemed the workers exempt from an overtime provision in the Fair Labor Standards Act.

Granting summary judgment to the auto insurance company, U.S. District Judge Leonard D. Wexler found that claims adjusters perform administrative duties servicing GEICO's general business operations, placing them outside the reach of the overtime provision.

The lead plaintiff in the suit, former GEICO claims adjuster Candace...